Ocado shares fall as major US partner using its technology plans closures

The value of the online grocer Ocado fell sharply yesterday after Kroger, its major partner in the US, announced the closure of three warehouses that use the UK company’s high-tech equipment.

- Sarah Butler

Ocado signed a deal to build 20 automated warehouses - known as customer fulfilment centres - for Kroger, the US’s fourth largest retailer, in 2018. Eight of those facilities are in operation with two more planned for next year. The deal was seen as a major part of Ocado’s plan to sell its online grocery delivery technology internationally.

Kroger said sites in Maryland, Wisconsin and Florida would close in January. Shares in Ocado were down more than 17% after the announcement, wiping about £350m off the value of the company.